The Real Estate Diversification Podcast

The RED Podcast
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Hosted by the experts at Kansas City Real Estate Law, The Real Estate Diversification (RED) Podcast is designed to help listeners understand the importance of diversifying their real estate assets, and will provide practical tips on how to do so.

  1. Ep. 33 | Property Tax Appeals

    09/22/2023

    Ep. 33 | Property Tax Appeals

    In this RED Podcast Legacy Series episode, Ferd Niemann explains Property Tax Appeals. Enjoy! HIGHLIGHTS: 0:00 – Intro 2:24 – Look at comps or the other properties in the area 3:08 – Sales chasing 3:48 – Appraisers need to appraise fairly and accurately 4:09 – There are 3 reasons to appeal; valuation, classification and discrimination 5:20 – Assessment is supposed to be revenue neutral 6:41 – Informal appeals and getting your documents together 9:20 – One of the benefits of the industry is that there's little barrier to entry 10:21 – Pull comps, and come up with the equalized value, and this will show a big difference in what you are paying 12:08 – Two options for the county are lower the equalized asset value or increase everyone else 14:03 – If you lose the board of equalization, you then go to the state tax commission 14:22 – Most of the time you need to hire an attorney and licensed appraiser just to play the game 14:51 – Going through a trial 16:13 – If you lose your only option is to then appeal in circuit court 17:36 – It’s important to continually do a cost-benefit analysis RESOURCES: Property Tax Appeal Checklist

    20 min
  2. Ep. 32 | Underwriting Property Taxes

    09/15/2023

    Ep. 32 | Underwriting Property Taxes

    In this RED Podcast Legacy Series episode, Ferd Niemann explains how to underwrite property taxes and how to get the most, or should we say the least, out of your tax bill. Enjoy! HIGHLIGHTS: 0:00 – Intro 0:58 – It’s important to do a good job with property tax projections 1:53 – Property tax appraisers have values lower than the current market value 2:59 – Property tax assessors don’t want to raise the property value and annoy voters 3:33 – There’s a risk when you purchase a property that your taxes are increased 4:11 – Ferd looks at the current market value in accordance with what the assessor tells him 4:26 – Looking at the purchase price 6:19 – Ferd’s formula for calculating tax dollars 9:08 – Know your jurisdiction to calculate your paying 9:48 – How probable will a tax increase will be? 15:34 – You should underwrite some percentage of increase 15:54 – Strategies to mitigate the risk 16:51 – Allocate some of the purchase price to non real estate items 17:59 – Try to flag the sale as invalid by throwing something unusual into the contract 20:05 – Buy the LLC membership units 21:25 – Another risk is bankability 21:51 – Get mutual or buyer indemnification provision pre-closing 24:12 – There are going to be extra filings for tax returns RESOURCES: Underwriting Property Taxes Checklist

    27 min
  3. Ep. 31 | 10 Things To Include In Your Zoning Letter

    09/07/2023

    Ep. 31 | 10 Things To Include In Your Zoning Letter

    In this Legacy Series episode of The RED Podcast, Ferd Niemann takes us through 10 Things To Include In Your Zoning Letter.Hosted by Jonathan Gilmore. HIGHLIGHTS: 0:00 – Intro0:59 – There’s 3 types of zoning; legal, illegal and legal non-conforming or grandfathering2:26 – Grandfathering has its roots in voting laws5:19 – A lot of mobile home park land was originally parking lots6:03 – To preserve your zoning, it’s important to keep at least one mobile home on your lot7:25 – A certificate of zoning or a zoning letter is government letter head which is your insurance policy to say you have a zoning right8:41 – Make sure there are no outstanding code violations on the property9:52 – Find out the current zone is12:12 – You want your letter to say a mobile home can be placed on all existing vacant or occupied lots16:30 – You want the zoning letter to reference the location of the homes in the park19:23 – Make sure there are no restrictions on the size of the home or the age of the home20:17 – Make sure there are no requirements or restrictions as it pertains to the concrete pillars or pads under the home21:22 – Usually the city doesn’t care21:23 – Ensure you’re not subject to development code or any new infrastructure requirements, impact fees or development fees based on the transfer of the park22:35 – You want your letter to say the park was existing prior to the code of 1975, although usually this is the first thing cut out24:06 – If the city objects, work out whether it’s worth it25:19 – Threatening to sue and using demand letters works a ton of the time25:36 – If they damage the value of your property, they have taken something from you, meaning if you beat them in court you can pursue legal fees27:33 – If you do sue and win, prepare for an appeal RESOURCES: ⁠Zoning Letter Checklist

    31 min
  4. Ep. 30 | Title Commitment and Surveys 101 – Part 2 of 2

    08/25/2023

    Ep. 30 | Title Commitment and Surveys 101 – Part 2 of 2

    In this Legacy Series episode of The RED Podcast, Ferd Niemann takes us through Title Commitment and Surveys 101 - Part 2. Hosted by Jonathan Gilmore. HIGHLIGHTS: 0:00 – Intro1:13 – The survey is an extension of the title commitment1:20 – Ferd describes the base-level boundary survey3:08 – Ferd describes a typical Alta survey7:16 – The first item on the Alta Survey, Table A is to do with monuments placed9:23 – Number 2 is the addresses of the surveyed property9:52 – Number 3 is the flood zone classification10:19 – Number 4 is the gross land area12:16 – Number 5 is vertical relief with the source of information12:44 – Number 6A is List the current zoning classifications and 6B graphically depicts the setback requirements13:41 – Number 7 is exterior dimensions of all buildings at ground level14:49 – Number 8 is substantial features observed in the process of conducting the fieldwork15:09 – Number 9 is the number and type of identifiable parking spaces15:45 – Number 10 is the determination of the relationship and location of certain division or party walls with respect to adjoining properties16:31 – Number 11 is the location of utilities existing on or serving the surveyed property22:24 – Number 12 is governmental agency survey-related requirements22:40 – Number 13 is the names of adjoining owners according to tax records23:45 – Number 14 is the distance to the nearest intersecting street24:13 – Number 15 is rectified orthophotography24:44 – Number 16 is evidence of recent earthmoving work, building construction, or building additions25:25 – Number 17 is proposed changes to street ride away lines25:46 – Number 18 is the location of any delineation markers26:14 – Number 19 is any plottable offsite26:41 – Number 20 is professional liability insurance27:20 – Ferd recommends that the seller pay for the survey and require them to include any surveys which have been done in the past21:25 – Surveys can be expensive, but they’re a must

    34 min
  5. Ep. 29 | Title Commitment and Surveys 101 – Part 1 of 2

    08/18/2023

    Ep. 29 | Title Commitment and Surveys 101 – Part 1 of 2

    In this Legacy Series episode of The RED Podcast, Ferd Niemann takes us through Title Commitment and Surveys 101.Hosted by Jonathan Gilmore. HIGHLIGHTS: 0:00 – Intro1:02 – There are many title companies out there, it’s not necessarily important which one you use2:05 – The first page is the Schedule A, this includes the date they did the survey on2:56 – Schedule A will tell you what type of policy and the policy amount4:20 – Next on Schedule A comes the proposed insured4:50 – Next Schedule A talks about the interest5:08 – Schedule A says who the title is currently vested in, followed by the land described5:56 – Schedule B notes the requirements and exceptions6:29 – You must be notified if someone else has an interest in the property7:00 – Schedule B will have an affidavit which is basically to say that certain things don’t exist8:22 – Schedule B will have some information about the documents of the title company required9:10 – Schedule B part 2 is the exceptions, Ferd cares about the easements the most and they’re usually slower13:05 – You need to work out what exceptions there are and fix them or work around them.14:15 – This is when your objections come in14:57 – If you have a lender involved, you’re going to need a loan policy16:19 – You can get a closing protection letter19:43 – The final step is the closing statement

    25 min
  6. Ep. 28 | 10 Land Mines to Avoid in Due Diligence

    08/11/2023

    Ep. 28 | 10 Land Mines to Avoid in Due Diligence

    In this Legacy Series episode of The RED Podcast, Ferd Niemann takes us through 10 Land Mines to Avoid in Due Diligence. Hosted by Jonathan Gilmore. HIGHLIGHTS: 0:00 – Intro0:52 – Warren Buffet is much better at avoiding a problem than getting out of a problem1:40 – Advertising your properties4:16 – Most mobile home park owners want to own the land not the homes but most tenants don’t want to buy7:55 – You have to look at the size of the lots and make sure you don’t get hurt with set backs10:10 – Read the zoning code, understand grandfathering and then negotiate with the city11:12 – What are the development restrictions and requirements for maintenance and operations12:00 – Make sure you have an operating city permit13:30 – Run a police report and a sex offender check14:19 – If someone is selling drugs in the park, hire an off duty cop to monitor the park for 2 nights17:33 – Make sure inspect the utility and infrastructure, such as the roads and gas lines18:42 – Make sure your title survey easement review matches up to your inspections20:15 – Inspect the water and sewer21:21 – Make sure there is valid title22:10 – Make sure due diligence doesn’t start until he gets his title and survey24:50 – Inspect the bankability of the property, make sure it will appraise, make sure it will pass the condition requirements for bank financing25:43 – Get a phase one environmental RESOURCES: ⁠Due Diligence Land Mines Checklist

    29 min
  7. Ep. 27 | 30 Seller Deliverables to Request for Your Due Diligence

    08/04/2023

    Ep. 27 | 30 Seller Deliverables to Request for Your Due Diligence

    In this Legacy Series episode of The RED Podcast, Ferd Niemann takes us through 30 Seller Deliverables to Request for Your Due Diligence.Hosted by Jonathan Gilmore. HIGHLIGHTS: 0:00 – Intro2:03 – When do you ask for the seller deliverables?7:16 – Request environmental reports for the property8:04 – Ask for any construction drawings or as built drawings of infrastructure10:24 – Copies of any easement agreements, amendments or derestriction10:33 – Copies of any permits, certificates of occupancy or licenses10:54 – Copies of any leases11:27 – Reports, tests and ratings of the infrastructure11:41 – Any appraisal of the property12:09 – A copy of their current insurance policy12:27 – A copy of any writer first refusal for any portion of the property12:45 – Copy of any property tax bills or assessments13:05 – Any letters of non-compliance from any governmental agencies13:15 – Copies of utility bills13:51 – Copies of all vendor and personnel contracts15:20 – Contact information of all vendors and personnel15:47 – Certified rent role16:13 – List of 5 best and worst aspect of the property16:35 – Copies of their bank statements17:43 – Copies of financial reports18:12 – Copies of tax returns18:51 – List of any capital expenditure over the last 5 years and projected over the next 2 years19:02 – List age and type of material of all utilities and infrastructure19:17 – Status of the utility20:01 – Date and amount of the last 3 rent increases20:51 – The list of any personal property which is included in the sale21:01 – List of any mobile homes included in the sale21:18 – A list of any criminal activity or problems over the last 2 years22:17 – The local police department will give you a report of the criminal activity RESOURCES: ⁠Due Diligence – Seller Deliverable List

    26 min
  8. Ep. 26 | 30+ Provisions for Effective Purchase & Sale Contracts – Including 4 That Will Save Or Make You Money

    07/28/2023

    Ep. 26 | 30+ Provisions for Effective Purchase & Sale Contracts – Including 4 That Will Save Or Make You Money

    In this Legacy Series episode of The RED Podcast, Ferd Niemann takes us through 30 plus provisions that must be in your purchase or sale contract, including 4 that will save or make you money. HIGHLIGHTS: 0:00 – Intro1:54 – Put the full and correct legal name of the seller in the contract2:14 – Put the full and correct legal name of the buyer in the contract3:06 – It’s important to have good assignment language5:25 – Get the legal description of the property and the address of the property in the contract5:45 – List personal property in the contract6:20 – Include the purchase price in the contract6:28 – Include the earnest money deposit amount and date it’s due in the contract6:46 – Include the right of entry in the contract6:54 – Include language about policies and find out what objections you can have7:50 – Reference the condition of the property8:10 – Put in a clause about the risk of loss8:54 – Your due diligence clock shouldn’t start until you have everything from the seller10:17 – Include an extension fee in the contract to buy more time11:10 – Mention seller required actions such as terminating any vendors contracted to the seller14:59 – You need prorations at closing15:23 – Include seller reps and warranties16:37 – Include buyers reps and warranties16:50 – Include a buyers right to terminate18:06 – Make sure you have damage or default19:00 – Have a closing date in the contract19:27 – Include the buyer contact details19:51 – Include a closing contingency for if you need an escape20:37 – Have a buyer/seller cost breakdown21:29 –  If you have a broker, you need to include broker representations22:03 – Make sure you have survival included in the contract22:50 – Have a 10-31 exchange included23:35 – Include a COVID clause, for extensions23:51 – The FERPDA provision is an extra form to fill out if you’re from a foreign country24:16 – There are boiler plate provisions which are usually included25:07 – Have a signature block, obviously25:09 – Include some exhibits like an aerial map26:11 – Finally, have an allocation to purchase price Resources: Purchase and Sale Contract – Key Terms

    31 min
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Hosted by the experts at Kansas City Real Estate Law, The Real Estate Diversification (RED) Podcast is designed to help listeners understand the importance of diversifying their real estate assets, and will provide practical tips on how to do so.

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